UK government announces £63 million EV investment package

On 13 July 2025, the UK government announced a £63 million investment package to accelerate the electric vehicle (EV) transition. The funding is intended to make EV ownership more accessible and cost-effective for households, businesses, and public services. The funding forms part of the government’s wider ‘Plan for Change’ mission.

Supporting private EV adoption

A core aim of the scheme is improving charging infrastructure to remove barriers to private EV ownership. Under the announcement, at least £25 million will be allocated to local authorities to expand at-home charging for residents without driveways. Investment will be focussed on ‘cross-pavement technology’ which allows cables to run safely from homes and under pavements for on-street parking. This technology is intended to allow individuals and families to benefit from the cheaper rates for household electricity in comparison to using public charge points, potentially saving them a predicted £1,500 a year against running a petrol or diesel car.

At-home charging will complement the 82,000 existing and 100,000 anticipated public charge-points to be installed under the government’s Local EV Infrastructure Fund. The initiative further includes modernising EV charging signage on major roads which means that large EV charging hubs will be signposted from A-roads. This aligns with the government’s wider support for motorists which includes £1.6 billion to be invested in tackling potholes and a freeze on fuel duty until Spring 2026.

Fleet electrification

Alongside support for private EV adoption, the scheme also targets the corporate and public fleets which represent the majority of new car sales in the UK. 

The NHS will receive £8 million for electrifying ambulance and medical fleets across over 200 sites in England. This is intended to create long-term savings on fuel and maintenance, which will allow re-allocation of resources towards patient care. The fund further includes a pledge to install 1,200 new charging points for NHS vehicles which will further assist this transition. 
On the private sector side, the government will launch a grant scheme that helps businesses set up charging points at depots nationwide. This development is critical for the freight, logistics, and coach industries, where electrification has lagged due to cost and infrastructure challenges.

Market Status and Consumer Choices

According to government data, EV purchases are on the rise, with the UK becoming Europe’s largest EV market and the third largest globally in 2024. A growing second-hand market, where 40% of used EVs now sell for under £20,000, has lowered purchase barriers for new adopters. Furthermore, brand-new EVs are increasingly offered at competitive price points, with 34 available models on the UK market costing under £30,000. 

The overall message accompanying the announcement is that affordable, convenient, and greener transport options are no longer out of reach and the funding is intended to facilitate the continued adoption of EVs across households and organisations alike.

Bird & Bird has significant experience advising clients in the EV charging infrastructure sector.  As a full service international law firm, this includes advising on issues ranging from corporate finance, compliance with EV charging regulatory regimes, commercial contracting, public procurement and much more. For further information, please visit our EV charging page or contact George Mason ([email protected]) or George Matthew ([email protected]).